UK-based fund manager Arlington Advisors has seeded a newly created £400m (€454m) student accommodation fund with 15 assets.
The manager said it is fundraising for Arlington Student Accommodation Fund (ASAF) to target purpose-built student accommodation close to university campuses in city centre locations.
ASAF will be seeded with a portfolio of assets made up of over 8,000 student beds, across 15 assets, in ten primary UK cities including London, Birmingham, Leeds and Manchester.
The portfolio is let both directly to universities and on a private-pay basis.
In addition to the seed portfolio, Arlington Advisors said it expects to deliver between 1,500 and 1,800 additional beds to the fund every year providing investors with a projected gross asset value of a further £150m a year.
Established in 2012, Arlington Investors’ portfolio currently has over 10,200 beds across 8 portfolios in 14 cities, which are managed by Arlington Advisors.